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<br />7A
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<br />. Upon termination of this Development Agreement, the City's right to collect facilities charges
<br />and to maintain the Fund will cease, except as necessary to complete construction projects
<br />for which fund monies have been committed prior to termination, and/or reimburse
<br />Redwood Shores.
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<br />. As of the date of termination of the Agreement, any monies remaining in the fund shall be
<br />disposed of in the following manner and priority: to complete facilities projects for which
<br />Fund monies have been committed; to reimburse Redwood Shores; and finally, toward
<br />retirement of the debt service of GID 1-64 bond obligations.
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<br />Part C - GID 1-64 Development Aareement Extension (1997-2002)
<br />On June 23, 1997, City Council approved the five-year extension (1997-2002) of the GID 1-64
<br />Development Agreement with Redwood Shores Properties, which is the successor of Redwood
<br />Shores, Inc. Subsequently, in 1998, Redwood Shores Properties, designated Ryland Homes
<br />as their representative on the GID 1-64 Committee.
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<br />Part D - GID 1-64 Develooment Aareement Extension (2002-2006)
<br />Since 2002, City Council has approved five consecutive extensions of this agreement: August
<br />23, 2002 (4th amendment), October 22, 2002 (5th amendment), June 23, 2003 (6th
<br />amendment), September 30, 2003 (ih amendment), September 30, 2006 (8th amendment) and
<br />was further continued by the 9th amendment for a period of three (3) years to September 30,
<br />2009. Under the 8th amendment, the City has designated one of its three representatives to the
<br />Redwood Shores Community Association, and the Developer has designated two of its three
<br />representatives to the Redwood Shores Owners Association and to the Shores Business
<br />Center Association. Under this structure, the representation has reflected the additional needs
<br />from local residents and business owners, and enables them to co-manage the remaining
<br />facility fee balance.
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<br />Part E - GID 1-64 Development Agreement Extension (2006 - 2009)
<br />The 1982 Development Agreement will terminate on September 30,2009. On March 14, 2006,
<br />Redwood Shores Properties signed the Assignment and Assumption Agreement for
<br />Development Agreement GID 1-64 with Redwood Shores Properties, LLC, and sold all of Area
<br />H to a third party purchaser, Max Keech (Keech Properties, LLC), on March 23, 2006.
<br />Subsequently, Redwood Shores Properties revoked the proxy right of the Redwood Shores
<br />Owners Association and Shores Business Center Association.
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<br />Upon the request of Keech Properties, LLC, a three-year extension was proposed by the GID 1-
<br />64 Facility Fee Management Committee on June 21, 2006, to allow the consideration of
<br />development of Area H under the GID 1-64 Development Agreement as anticipated.
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<br />Part F - ProDosed Amendment to GID 1-64 Development Aareement
<br />The most significant effect of this amendment is the removal of Area H from this agreement.
<br />The development of Area H is made much more complex by the fact that the infrastructure
<br />required to development includes a levee system. This requirement makes the traditional
<br />model of using the Facility Fee to offset the cost of infrastructure non-applicable. The cost of
<br />reclaiming the land and infrastructure not only exceed the potential facility by far, it is not
<br />logical for the developer to finance the reclamation and infrastructure development, then pay
<br />Facility Fees when the units are ready to be built, only to turn around and apply for
<br />reimbursement of the same fee. Therefore, if Area H is taken out of the GID 1-64, the
<br />developer will just develop Area H independently.
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<br />JULY 21,2008
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